Health and wellness company Isagenix is taking a strategic approach to building relationships through a new online community focused on healthy aging.
The news in and around the Direct Sales aka Network Marketing World is roaring right now from Wall Street to Main Street. So what is it, that has everyone talking? I think it is the fact, that from regulators to critics, people are starting to recognize legit network marketing companies from illegal ponzi and pyramid money schemes. This new awareness is opening the doors for investors all the way down to brand new independent professionals getting involved in direct sales in one form or another.
BK Boreyko, Co-founder and CEO of VEMMA, home of the Young Peoples Revolution shot me over the numbers for the first half of 2013…
Starting in January – $14 million, February – $15 million, March – $18 million, April – $19.1 Million, May – $19.3 million, and June – $18.1 million. That’s a total over 103 million dollars! And I might also add that in June VEMMA acquired over 24K new customers and Brand Partners!
San Diego, CA – July 8, 2013 – CLR Roasters, a wholly owned subsidiary of Youngevity International Inc. (OTCQX: YGYI) (www.YGYI.com), announced today that it has signed an agreement with Marketing Management Inc’s (MMI) subsidiary brokerage firm Market Solution Inc. (MSI), to represent CLR Roaster’s Café La Rica Espresso and Josie’s Java House ground coffee brands on a nationwide sales campaign.
Café La Rica holds the third place in sales per unit through Walmart stores with a recent increase of 46%. Over the past 52 weeks, Café La Rica has seen a sales increase of over 300% through Winn-Dixie stores. Café La Rica has also been authorized for sale in 318 Publix Super Market locations in Florida.
Josie’s Java House is a boutique styled ground coffee that comes in a variety of blends and flavors. In 2014, the Josie’s Java House line is to be expanded to include Hazelnut Cream through Walmart.
Café La Rica and Josie’s Java House coffees have full distribution through Sedano’s Supermarkets, the largest Hispanic Supermarket chain in the country. As well as being distributed by Associated Grocers, which services 450 independent stores throughout the state of Florida. Discount Drug Mart has added the Josie’s coffee line and Café La Rica Espresso to all 72 of their stores in Ohio with repeat orders. (Read the full Press Release)
CVSL And Tomboy Tools Sign Letter Of Intent
OPENS DOOR TO HOME IMPROVEMENT AND HOME SECURITY MARKETS
DALLAS and DENVER, July 12, 2013 /PRNewswire via COMTEX/ — Tomboy Tools, Inc., an Entrepreneur Magazine “Top 100 Brilliant Company,” and CVSL Inc. [stock symbol: CVSL] announced today that they have signed a letter of intent for Tomboy Tools to become part of CVSL’s family of direct selling companies. (Read Full Press Release)
If short interest as a percent of equity float is an indicator of popularity, Blyth Inc. (BTH) is the most hated stock on the NYSE. However, an in-depth look into the company reveals some key factors that may create an extremely positive risk reward. The market is currently offering shares at unsustainably low valuation, four times management’s 2013 cash flow guidance. Pessimism toward the company is extreme with 75% of the current float short. Management is aggressively repurchasing shares of the company. 14% of the equity float has been repurchased in the last three quarters at higher stock prices than today. The company has repositioned its balance sheet resulting in nearly five years prior to its senior notes maturing. The company’s largest business segment and the focus of the short sellers, appears to be turning a corner. Now may be the perfect time to become a contrarian and invest in Blyth Inc. (Read The Full Report)
To make a clear distinction between genuine direct-selling companies and fraudulent ponzi schemes, the government will soon put in place a set of ‘model guidelines’ to be followed by different states in such cases.
“These guidelines are close to being finalised by the Consumer Affairs Ministry and the Corporate Affairs Ministry has given its suggestions and other inputs in this regard,” union minister Sachin Pilot said.
“There was a meeting of consumers affairs secretary,corporate affairs secretary, myself and other stakeholders on the issue. Once we put these standard guidelines in place, the ambiguities about genuine companies and fraudulent schemes would go away,” the corporate affairs minister told PTI in an interview here. (Read Full Report Here)
Direct selling is a business model that offers entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services, typically outside of a fixed retail establishment, through one-to-one selling, in-home product demonstrations or online. Compensation is ultimately based on sales and may be earned based on personal sales and/or the sales of others in their sales organizations.
Direct sellers may be called distributors, representatives, consultants or various other titles. They may participate in various ways, including selling the products themselves or through their sales organizations, providing training and leadership to their sales organizations, referring customers to the company and purchasing products and services for personal use.
Network Marketing Pros In The News
Doug DeVos and Steve Van Andel (Amway) have been named Business Persons of the Year by the Economic Club of Grand Rapids. They were honored at a dinner at DeVos Place that was headlined by Hillary Clinton, former secretary of state, U.S. senator and first lady. Steve was also named Chairman of the Board of the U.S. Chamber of Commerce this week, where he will serve a one-year term.
Kirsten Aguilar (Vice President of Marketing) and Leslie Boyd-Bradley (Director of Distributor Development) have been named to SeneGence’s non-profit organization, the Make Sense Foundation.
Diahanna Brown, Vice President, Worldwide Events and Promotions for Herbalife, was awarded the Humanitarian of the Year Award by Union Rescue Mission in Los Angeles.
Steve Hastings has been appointed Executive Vice President of Sales & Marketing for Reliv; Brett Hastings has been appointed Senior Vice President and Chief Operating Officer.
Juliet Morgan has been appointed Chief Marketing Officer at foru international.
Mark Patterson has been promoted to Executive Vice President of Vemma.
Andre Peterson, former Director of Global Public Relations of Morinda Bioactives, passed away in his home on June 1, 2013. Andre had been with Morinda Bioactives for 12 years, having also worked at WordPerfect and Managed Wealth Financial.
Monica Wood is now Vice President of Consumer and Distributor Insights forHerbalife.
Network Marketing Companies In The News
The 11th Annual American Business Awards, aka the Stevie Awards, were presented to honorees during a gala banquet on June 17, 2013 in Chicago. The second round of winners will be announced on Sept. 16, 2013 in San Francisco. DSA congratulates the following direct selling companies for their achievements.
- Bronze Stevie Award—ACN’s 20th Anniversary Celebration—Best Tradeshow or Convention
- Bronze Stevie Award—ACN Celebrates 20 Year Anniversary—Motivational Video
- Bronze Stevie Award—Isagenix Celebration 2012—Live Event
- Bronze Stevie Award—IsaDerby—Best Internal Recognition/Motivational Event
- Bronze Stevie Award—Experience Isagenix—PR Video
- Bronze Stevie Award—Company of the Year—Health Products & Services
Pending member North American Power
- Gold Stevie Award—Management Team of the Year—Consumer Services Industries
- Gold Stevie Award—Company of the Year—Consumer Products—Durables
- Silver Stevie Award—Paul Thies, Senior Director of Communications—Communications Professional of the Year
- Gold Stevie Award—Management Team of the Year—Consumer Products Industries
- Silver Stevie Award—Communications or PR Campaign/Program of the Year—Social Media Focused
- Silver Stevie Award—Dan Macuga, Chief Communications Officer—Communications, Investor Relations or PR Executive of the Year
- Silver Stevie Award—Human Resources Department of the Year—Health Products and Services
- Silver Stevie Award—USANA Corporate Rebrand—Brand Executive of the Year—Health Products & Services and Pharmaceuticals
- Bronze Stevie Award—Ashley Collins, Executive Director of PR and Social Media—Communications, Investor Relations or PR Executive of the Year
- Bronze Stevie Award—Dave Wentz, CEO—Executive of the Year—Health Products & Services
- Bronze Stevie Award—USANA 2012 International Convention—Best Tradeshow or Convention
- Bronze Stevie Award—Doug Braun, Chief Marketing Officer—Marketing Executive of the Year
- Silver Stevie Award—BK Boreyko, Founder and CEO—Executive of the Year—Health Products & Services
- Bronze Stevie Award—Vemma Revolution Convention—Best Tradeshow or Convention
- Bronze Stevie Award—Vemma Achieve Film Series—Motivational Video
- Bronze Stevie Award—This is Vemma! Welcome to the Revolution—PR Video
- Bronze Stevie Award—Verve Bold Launch—Marketing Campaign of the Year—Health Products & Services
AL International, parent company of non-member Youngevity, has changed its name to Youngevity International, Inc., and will trade under the stock ticker “YGYI.”
Amway is teaming up with KaBOOM! to build a new playground at the Indian Trails Camp in Tallmadge Township, Mich. The camp provides camping experiences for children and adults with disabilities.
Avon’s beauty and fashion boutique brand, mark, has named actress and singerLucy Hale a Beauty Ambassador. In the role, Hale will appear in mark Magalogs, as well as on mark and Avon digital platforms. She will also be the spokesperson for the m.powerment by mark campaign, the brand’s philanthropic effort dedicated to breaking the cycle of dating abuse and partner violence against young women.
Creative Memories recently announced that plans for layoffs, detailed in an April 16, 2013, notice, will no longer be happening. “We have been and will continue to make changes, but at this time we aren’t expecting any layoffs of that magnitude . We want the business to go forward and we need people to do that,” said Chris Veit, CEO.
CUTCO/Vector Marketing recently presented Linda Price, Ph.D., department head and Underwood Family Professor of Marketing in the Eller College of Management at the University of Arizona, with its CUTCO/Vector Distinguished Marketing Award for Lifetime Contributions to Marketing Scholarship, endowed by Vector Marketing Corporation.
Herbalife was presented with an award for its corporate social responsibility by Global Views magazine in Taiwan. The award, in the “Care for the Community” category, was in recognition of Herbalife’s commitment to helping the development of youth baseball in Taiwan.
Immunotec has released its second quarter 2013 financial results. Total revenue for the three-month period reached $12.6 million, an increase of 10.6 percent as compared to the same period in the previous year. Total revenue in the six-month period reached $24.8 million, an increase of 10.4 percent as compared to the same period in the previous year. Network sales in the three-month period reached $11.2 million, an increase of nine percent as compared to the same period in the previous year. Network sales in the six-month period reached $22.4 million, an increase of 10.7 percent as compared to the same period in the previous year. View the full press release online.
Mannatech recently announced the launch of its Give for Real℠ program. This unique, donation-through-consumption initiative is designed to help consumers and social entrepreneurs meet the needs of malnourished children around the world. For every purchase on an automatic order containing certain products, a donation of PhytoMatrix® bulk dietary supplement is provided through MannaRelief to children in need worldwide. MannaRelief is an independent, nonprofit organization.
Mary Kay donated $326,400 to the China Women’s Development Foundation to fund a micro-credit project for women in southwest China’s Chongqing Municipality. The funds will go toward helping poverty-stricken women start their own businesses.
In additional company news, Mary Kay has partnered with Jordyn Wieber, the reigning Olympic gold medal gymnast, to raise awareness of teen dating abuse as the official spokesperson of Mary Kay’s “Don’t Look Away” campaign to help prevent and end dating abuse.
Nu Skin will be opening its Innovation Center in October in Provo, Utah. The facility includes two restaurants (both open to the public), a water feature in the 18,000-square-foot, four-story atrium, walking and hanging gardens, a state-of-the-art fitness facility and a two-story glass pavilion with mountain vista views.
Pending member Origami Owl has made the following staff appointments:
- Robin Crossman is now the company’s Chief Executive Officer
- Deb Bursley is Senior Vice President, Marketing and Communications
- Kym Gonzales is Vice President, New Market Development
- Pam Mercado is Vice President, Sales Strategy and Incentives
- Tracey Vlahos is Executive Director, Field Sales Development
PartyLite is a recipient of Manufacturing Executive’s 2013 Manufacturing Leadership 100 Award. The company’s winning project in the Global Value Chain category highlights its successful program to optimize its supply chain through the use of Logility Voyager Solutions™. The Manufacturing Leadership 100 Awards (ML100), presented by Manufacturing Executive, honor manufacturing companies and individual manufacturing leaders who help shape the future of global manufacturing.
In additional company news, PartyLite sponsored and participated in the Relay for Life of Greater Plymouth (Mass.) recently. The event is an annual fundraiser for the American Cancer Society.
Primerica held its 2013 conference last week at the Georgia Dome. Approximately 35,000 distributors attended the event.
Scentsy recently donated $123,000 to the Special Olympics International. Orville and Heidi Thompson presented the check to representatives from Special Olympics International and member Lauren Schmellick, an Idaho contestant in the 2011 Special Olympics Summer World Games in Athens, Greece, during a ceremony. The money was raised through the sales of its fall and winter special release candle, “Champion.”
Distributors who attended Talk Fusion’s “Believe” corporate event, held recently in Russia, raised a total of $80,000 to benefit Rusfond USA to pay for three surgeries for a Ukrainian toddler suffering from spina bifida.
WineShop At Home has moved into a new 20,000-square-foot facility in Napa Valley, Calif., at the Gateway Business Park.
WorldVentures has launched a Trust Council to measure, audit, counsel and advocate company practices and behaviors in the field and at the corporate office. The council includes corporate executives as well as independent representatives.
This week I share about a new format I will be using in reporting the news in 2013, and some of fantastic news on the financial health of the direct selling industry and the network marketing community that makes it what it is.
Direct Selling Companies You May Not Have Heard Of!
Awbrey Smith started this company out of her home in 2011. With little to go on besides a crazy idea and “dream” of what she wanted to accomplish for women all over the country, 2CP has grown by leaps and bounds since it’s opening. According to Awbrey, the success of 2CP lies within her amazing team (listed below) and the consultants and customers who make each day an exciting one! Work is no longer what she has to do to help pay the family bills, it is now a growing change that Awbrey is helping make in women’s lives all over.
We have been helping women build businesses for over 20 years.
Cookie Lee jewelry is delivered directly to customers through shows, fundraisers and personal shopping. Our ever-growing base of independent Consultants operates throughout the United States.
A HISTORY OF SWEET SUCCESS!
DOVE CHOCOLATE DISCOVERIES™ launched in February 2007 as one of the latest ventures from Mars, Incorporated. Now, a global leader in chocolate, Mars roots goes back to the kitchen. In the 1880’S, when Frank Mars was a young boy, his mother taught him to hand-dip chocolate. With his wife, Ethel, Frank started a home candy-making business in Tacoma, Washington, that eventually grew into Mars, Inc., a world-wide industry leader in chocolate confections. Going back to its direct-selling heritage, Mars created DOVE CHOCOLATE DISCOVERIES™. Since then, the Chocolatier sales force has taken off. There are now Chocolatiers in 48 states.
With over 100 years of candy-making experience behind us, DOVE CHOCOLATE DISCOVERIES™ is dedicated to creating the ultimate chocolate experience – in the comfort of your own home, providing an opportunity to share some sweet moments with family and friends. Plus, as a Chocolatier, you’re walking in the door with respect and recognition. What could be sweeter than that!
The lia sophia Story
Jewelry has been a passion in the Kiam family for decades. In fact, lia sophiaisn’t the only jewelry company that family patriarch and entrepreneur Victor Kiam and his wife, Ellen, were a part of. They learned a great deal about the business from the Friendship Collection, which they started as a mom-and-pop enterprise in their apartment decades earlier. By the 1970s, it had grown into the United States’ largest importer of jewelry, antiques and artifacts from China. Even early on, their instincts were good. (Read On)
We had a question in early 2010- what would happen if women were able to earn some extra money selling designer jeans at a discount? Well, based on the success we have had so far, the answer is pretty clear. Vault Denim is a direct sales company that is a little different than others. Our consultants don’t have to spend money to purchase their own inventory- we provide it. Customers don’t place orders at home parties and then wait for products to be shipped- they wear their new jeans home. And because we sell the same jeans found in department stores for up to 50% less, people are lining up to host parties and become a part of this fast-growing, exciting company.
Leslie Montie never dreamed she would become the founder of a company that helps families enjoy great tasting, nutritious meals in minutes.
When Leslie discovered that her two young children had medical conditions requiring special dietary restrictions, she began her search for healthy alternatives. “It was amazing how this impacted our entire family.” recalls Leslie. â€œI needed to come up with meals that my children would not react to, yet still enjoy. And since I was a full-time working mom, they had to be easy to make.” (Read On)
At Willow House, our mantra is Simply Good Design — and it permeates everything we do.
Our in-house designers strive to create high-quality products with impeccable design and effortless style, from the sparkling luxury of our designer Jewelry by Sara Blaine to our line of exclusive home décor and American artisan pieces.
More than simply “on trend,” our exclusive home décor and jewelry collections are thoughtfully designed to be timeless. They’re pieces that you’ll enjoy wearing and decorating with season after season.
But Simply Good Design runs deeper than our look — it’s in the very soul of our company. You see, Willow House offers our family of Consultants two strong divisions to grow their own small business — Jewelry by Sara Blaine and Style for Home. We empower our Consultants with the tools needed to succeed in this ever-growing industry.
Willow House is the most compelling home-based business opportunity in America. Through e-commerce, savvy social media marketing and our on-trend blog, Plate & Pattern, we help our Consultants connect with their customers in new, exciting, and profitable ways.
Network Marketing Company News
AdvoCare will continue its partnership and primary sponsorship of Austin Dillon’s No. 3 AdvoCare Chevrolet for the 2013 NASCAR Nationwide Series season. This follows the company’s sponsorship of Dillon and the No. 3 car for 20 races in the 2012 NASCAR Nationwide Series season.
Berkshire Hathaway, parent company of Kirby, The Pampered Chef and World Book, announced its financial results for the third quarter of 2012. The conglomerate reported that its third-quarter profit rose as strength in the railroad and utility businesses, as well as investment gains, offset weaker results in its insurance units. Berkshire said its cash holdings grew to $47.78 billion, up $10 billion from the start of the year. View the full press release online.
Blyth, parent company of PartyLite and ViSalus, reported earnings for the third quarter of 2012. Net sales for the three months ended Sept. 30, 2012, increased 40 percent to $268.8 million versus $191.5 million for the comparable prior-year period, primarily due to the 132 percent year-over-year sales growth at ViSalus. International sales for Blyth represented 25 percent of third-quarter sales this year, compared to 34 percent last year, driven by ViSalus’ strong domestic sales growth. View the full press release online.
Fuller Brush recently celebrated its 106th anniversary.
Mannatech has reported net income of $2.2 million for the third quarter ending Sept. 30, 2012, compared to a net loss of $3.7 million for the third quarter of 2011. In achieving net income of $2.2 million for the third quarter of 2012, non-cash items impacting profitability included a reduction in a previously recognized deferred tax asset valuation allowance of approximately $1 million, a release of reserves related to transaction taxes of $800,000 due to the expiration of statutes of limitations, and income from foreign currency exchange rate fluctuations of $500,000. Third-quarter operating profitability and net income adjusted for the non-cash items listed above was near even as the company moves closer to its goal of profitability.
Net sales for the third quarter of 2012 were $43 million, a decrease of 14.8 percent, compared to $50.5 million in the third quarter of 2011. Net sales for the U.S. and Canada declined 16.3 percent to $20.5 million, compared to $24.5 million in the third quarter of 2011. International net sales of $22.5 million decreased 13.5 percent, compared to $26 million in the third quarter of 2011. View the full press release online.
Medifast, parent company of Take Shape for Life, announced its financial earnings for the third quarter of 2012. Net revenue increased 20 percent to $91 million from net revenue of $76.1 million in the third quarter of the prior year. Each of the company’s three primary distribution channels, Take Shape for Life, Direct Response Marketing and Medifast Weight Control Centers and Wholesale Physicians, contributed to this year-over-year revenue increase. Revenue in the direct sales channel, Take Shape for Life, increased 20 percent to $55.6 million in the third quarter of 2012 compared to $46.4 million in the same period last year. Growth in revenue for Take Shape for Life was driven by increased customer product sales as a result of an increase in the number of active health coaches and an increase in the monthly revenue per health coach. The company ended the third quarter with approximately 10,800 active health coaches and the average revenue per health coach per month for the quarter increased 3 percent to $1,634 compared to $1,585 in the third quarter of 2011. View the full press release online.
Nature’s Sunshine Products recently reported its third-quarter financial results. Net sales were $91.2 million, compared with $91.1 million in the same quarter a year ago, an increase of 0.1 percent; however, net sales increased 2.1 percent in local currencies. As of Sept. 30, 2012, active managers worldwide were 28,700, an increase of 1.8 percent from Sept. 30, 2011, while active distributors and customers worldwide were 656,800, a decrease of 3.7 percent from the end of the quarter a year ago. Operating income was $8.7 million, compared with an operating loss of $5.1 million and pro forma operating income from continuing operations of $9.6 million (excluding contract termination costs) in the same quarter a year ago, a decrease of 9.7 percent year-over-year. For the first nine months of the year, net sales were $277.1 million, compared with $275.8 million in the same period a year ago, an increase of 0.5 percent; however, net sales increased 2 percent in local currencies.
Net income was $20.9 million, compared with net income of $10 million and pro forma net income of $19 million (excluding contract termination costs) in the same period a year ago, an increase of 9.9 percent year-over-year. In the U.S., net sales were $33.7 million, compared with $33.5 million in the same quarter a year ago, an increase of 0.5 percent. Net sales for core products increased by 1 percent, but were partially offset by the discontinuance of non-core products. Active managers within NSP U.S. totaled approximately 5,300 and 5,600 at Sept. 30, 2012 and 2011, respectively. Active distributors and customers within NSP U.S. totaled approximately 191,500 and 210,300 at Sept. 30, 2012 and 2011, respectively.
Synergy WorldWide, a wholly owned subsidiary of Nature’s Sunshine Products, Inc., reported net sales of $26.3 million, compared with $24.5 million in the same quarter a year ago, an increase of 7.1 percent. In local currencies, net sales increased 13.1 percent compared to the same quarter a year ago. Active managers within Synergy Worldwide totaled approximately 3,200 and 2,600 at Sept. 30, 2012 and 2011, respectively. Active distributors and customers within Synergy Worldwide totaled approximately 89,100 and 85,000 at Sept. 30, 2012 and 2011, respectively. View the full press release online.
Primerica announced its financial results for the third quarter of 2012. Total revenues were $299.1 million in the third quarter of 2012 and net income was $45.6 million. Operating revenues increased by 7 percent to $295.2 million in the third quarter of 2012, compared with $276 million in the third quarter of 2011. Net operating income grew by 21 percent to $45.1 million in the third quarter of 2012, compared with $37.3 million in the third quarter of 2011. The size of the company’s life-licensed insurance salesforce was 91,506 at Sept. 30, 2012, up modestly from 90,868 at June 30, 2012.
There was downward pressure on recruiting in the second and third quarters as the company placed more focus on licensing initiatives, which improved the percentage of new recruits obtaining a license in those quarters. Lower sequential recruiting levels in the second quarter and a 3 percent decline in recruiting in the third quarter from the second quarter translated into 12 percent fewer new life licenses in the third quarter than in the second quarter of 2012. On a year-over-year basis, the life-licensed salesforce was down slightly from 91,970 at Sept. 30, 2011. Coming off the unusually high post-convention recruiting surge in 2011, recruiting declined 43 percent to 47,639, and new life licenses declined 17 percent to 8,613 compared with the third quarter of 2011. View the full press release online.
Stella & Dot won the Retail Innovation award for the 16th annual Accessories Council Excellence Awards. The company was also listed as No. 11 on the “100 Fastest Growing Private Companies in the Bay Area” list, published in the San Francisco Business Times.
Stream Energy is working to assist low-income families this winter with a donation to the Fuel Fund of Maryland. The donation will help families in distress with their heating and energy needs. The company has provided electricity services to customers in Maryland since 2011.
Direct Selling on Wall Street: Despite Challenges, Companies Post Record Q3 2012 Results
As the United States continues to emerge from the effects of the global recession, direct selling companies are seeking—and, in many instances, capitalizing on—opportunities for growth and expansion in the U.S. and abroad.
Herbalife reported record third-quarter net sales of $1 billion, a 14 percent increase year over year; and Nu Skin announced record third-quarter results with revenue of $526.2 million, a 23 percent improvement over the prior-year period. Additionally, USANA’s net sales for the third-quarter 2012 increased by 15.1 percent to $165.2 million.
Although such results are not representative of the entire industry, they are indicative of the steady growth various companies across the channel have experienced in recent months.
“We truly believe, as direct sellers, we’re at the right place at the right time,” said DSA President Joe Mariano. “We’re an industry that clearly thrives on better service, consumer education and opportunities that aren’t necessarily available to the rest of the market. We’re centered on the fact that people trust what we do and share a passion for what we do and that’s something unique.”
In many ways, this uniqueness that defines the direct sales channel proffers an advantage as companies look to enter the public market.
“As more and more direct selling companies continue to do well in the public market, that will be great for the overall industry and attract more investors,” said Rodney Clark, Managing Director and Co-Head of U.S. Consumer Investment Banking with supplier member Canaccord Genuity Inc. “The model has worked extremely well and growth is strong. As direct selling companies mature, they have to find ways to continue their growth, whether it’s through new products or distribution or expansion to new markets.”
While financial gain is most commonly viewed as the distinct advantage to going public, for many companies—particularly direct selling companies—another key benefit is an increased public awareness of the company as well as the business model itself.
“There is somewhat of an education element present in that people who don’t know much about the direct selling model might have picked up on the bad case studies that are out there and based their opinions on those instances,” Rodney said. “The direct selling industry is going to have to distance itself from those cases over time. It’s very similar to what’s happened in the nutrition industry. There was once a lot of turmoil but, in that industry, we’ve seen a lot of strategic big deals. Just like the nutrition industry, as direct selling gains traction, investors will become more astute to the fact that this is a highly productive channel.”
Even when negative coverage of the direct sales channel is not making front-page news, broad-sweeping generalizations, however inaccurate they might be, pose challenges to direct selling companies looking to break into the public market.
“The industry has had some challenges in the public’s eyes so valuations aren’t very rich right now,” Rodney said. “It’s been a little challenging for direct sellers to attract new investors because there’s been a spotlight on the industry and there hasn’t always been a positive tone in some of the coverage that’s out there. But, what companies are showing coming out of the recession is that many are getting the right products and services into distributors’ hands and are seeing strong growth. These business models are fantastic and if you’ve got the right products in the right hands and distributors who are excited and engaged, you can post positive results.”
As direct selling companies new to the public sector face a number of challenges including legal and accounting fees, Securities and Exchange Commission reporting requirements and pressure to increase earnings, it is important to recognize that the greatest challenges are often those that companies face internally.
“Abstracting from the direct selling industry and looking at the broader market, any company can face challenges in the spotlight, but that doesn’t necessarily mean that the rest of the industry isn’t doing well or shouldn’t be viewed favorably,” Rodney said. “The challenges could be company-specific, such as management issues. Overall, the industry is a strong industry and for the companies that are well-managed and on trend, they’re firing on all cylinders in the public market and even experiencing a great deal of international growth.”
This week’s MLM News Report covers some great info from Vemma, MonaVie, ViTel, Ocean Avenue, and many of the top 500 and 5000 companies of the Inc. Magazine’s fastest growing companies.
BK Boreyko founder of VEMMA emailed me this week to ask me if I knew what $5.5 Million dollars looks like?
ViTel Wireless Touring The Nation Laning In Atlanta The First Week of Septermber 2012
EUROPEAN DIRECT SELLING
Direct Selling clearly on the rise in Poland
The direct sales market in Poland increased by 1.3% year on year in 2011 to €585.4m. Cosmetics and personal care products accounted for 69% of the revenues of companies affiliated in the Direct Selling Association of Poland (PSSB). The year before this category held 70% while a European Union average in 2010 stood at 38%. The second largest value share in the Polish direct sales market had household appliances, which generated 13.4% of the overall direct retail sales in the country, marking a 3.4% increase year on year. OTC medicines and dietary supplements accounting for 11.6% of direct sales in Poland in 2011 and growing at 3.1% on a yearly basis. Approximately 870,000 individuals were involved in direct sales in Poland last year, of which 88% are women.
Companies operating on the market employed about 1,497 people, and 96% of the revenues came from person to person sales. Companies on the direct sales market include Amway, Avon Cosmetics, Forever Living Products, Herbalife, Mary Kay Cosmetics and Oriflame. Poland is the fifth largest direct sales market in Europe after France (€3.7bn), Germany (€2.7bn), Italy (€2.4bn), and Great Britain (€1.4bn).
Inc. Magazine announced its list of the top 500 and 5,000 fastest-growing companies. Direct selling companies included in the top 500 list were Stella & Dot (no. 57) and non-member J.Hilburn (no. 221). Companies included in the top 5,000 were Scentsy (no. 516), non-member It Works! Global (no. 662), YOR Health (no. 1220), Ambit Energy (no. 1305), Initials (no. 1555), non-member Acuity (no. 2020), 5LINX Enterprises (no. 2900), Supplier member FONA International (no. 4031), Symmetry (no. 4121) and Isagenix International (no. 4951).
The 2012 International Business Awards, a.k.a. the Stevie Awards, were announced this week. Winners will be celebrated and presented with their awards at a banquet in South Korea this October. DSA congratulates the following direct selling companies for their achievements:
Subscriber member ARIIX: Bronze Stevie Award –
Company of the Year – Health Products & Services and Pharmaceuticals
Morinda Bioactives: Bronze Stevie Award – Best New Product or Service of the Year – Consumer Products
Nu Skin U.S.: Bronze Stevie Award – Management Team of the Year
Nu Skin Korea/North Asia:
Gold Stevie Award – Company of the Year – Health Products & Services and Pharmaceuticals
Gold Stevie Award – Fastest-Growing Company of the Year in Asia (China, Japan and Korea)
Silver Stevie Award – Executive of the Year – Health Products & Services: Luke Yoo, CEO
Non-member The Learning Annex: Gold Stevie Award – Executive of the Year – Internet/New Media: David Galvan, CEO
Bronze Stevie Award – Management Team of the Year
Bronze Stevie Award – Customer Service Department of the Year – All Other Industries
AdvoCare recently held a Success School Conference in Fort Worth, Texas, during which independent distributors collected more than 1,400 backpacks and raised more than $27,000, all of which will benefit Operation Homefront, an organization that provides emergency financial and other assistance to families of service members and wounded warriors. This is the third year AdvoCare has stepped forward to help Operation Homefront. The company is on target to surpass its Platinum-level commitment of $250,000.
Pending member AnyArt recently launched the Canvas for a Cause program, whereby each independent distributor, in cooperation with their home party hostess, can select from a list of charities the one they would like a percentage of their parties’ sales to benefit. Guests are made of aware of such charitable donations through the invitations and reminders for the party.
Avon has announced that Paula Abdul will be a spokeswoman for their accessories collection, “Forever” selected by Paula Abdul.
Natural Health Trends, parent company of NHT Global, announced its financial earnings through June 30, 2012. The company reported first-half sales of $20.1 million, up 62 percent over the $12.4 million of a year ago. In the second quarter, sales, at $11 million, were up 52 percent over a year ago. View the full press release online.
Oriflame of Sweden has reported its financial earnings for the second quarter of 2012. For the three months ended on June 30, 2012, local currency sales increased by 1 percent and Euro sales were up by 2 percent to €373.6 million. Average size of the salesforce decreased by 5 percent to 3.6 million. Oriflame consultants and closing salesforce was down by 6 percent. For the past six months that ended on June 30, 2012, local currency sales increased by 2 percent and Euro sales were up by 1 percent to €769.3 million. View the full press release online.
In this week’s MLM News Report, we look at the FTC Business Opportunity Rule ready to go live in march 2012. And we have seen network marketing companies continuing to roll out their financial success from 2011 and it is amazing. Plus, the MLM energy sector is now getting hot on both sides of the Northern boarder. And if you have not heard, direct selling weight loss companies are breaking records on a monthly basis.
Success Tip Of The Week – Sponsored by – Best In U
This week’s tip is about feeling worthy of success
Many people go through life wanting success and wishing and hoping and desiring it, but down deep inside, at an unconscious level, they feel that they do not really deserve it. Haven’t worked hard enough, not special enough, not important enough, not good enough, etc.
We have been studying and working on the laws of success for the well over 20 years and one thing that rings so true is this:
Your success grows in direct proportion to your self-worth.
In order for you to receive financial abundance, you must be in a place in which you are feeling deserving of that success.
There is magic in understanding that success comes as a results of feeling worthy. As your self-worth increases, you naturally get into the flow of doing what you love and being rewarded for it.
Raising your self-worth can be as easy as thinking about one really great thing about you. Embrace that quality. Build and expand upon that. Liking yourself requires you to really tune into and be who you really are. Take time to discover that. Ask your friends what qualities you have that they really like.
If you are in a negative environment surrounded by negative people….CHANGE your environment and the people you hand around with. You have all heard that your net worth and the money you make is an average of the 10 people you are closest to.
If you are not satisfied with where you are at, change the people you hang around with. Hang with successful people that will support you and your goals and dreams. Go to meetups and put yourself in a position to meet those people.
Look for them online on linkedin, facebook and twitter and follow what they do. People are willing to help. Steve Jobs, when talking about what made him so successful said one of the reasons is that he wasn’t afraid to ask people for help. Most people are not even willing to pick up the phone and ask or reach out.
Begin to take steps toward your feelings of self-worth today! Life is not a dress rehearsal. You deserve to live the life you dream about. Surround yourself with people that encourage and support those dreams. Your Worth it!
Next week we will be discussing goal setting and tips and techniques on how to best achieve your goals as we help to develop the BEST In U
Isagenix will be showcased on TLC Saturday January 22, 2012.
Isagenix grew their revenues to well over $260 million dollars in 2011. This is due 100% because the distributor base took the product to those who really needed and wanted to change their lives. From what I have seen 2012 will be as big if not bigger for this 10 year network marketing company.
Congrats to Team Destiny for believing in the leadership and company in 2002! Your success shows that if a team will find a home and stick with it, then the dream of residual income and possible financial independence can really happen in Network Marketing in the 21 Century!
Plexus Worldwide leaders have hit the ground running in 2012 launching their Opportunity of a Lifetime Tour throughout the South!
21 events in 8 days, and that is just the beginning! Check out their new video!
There is some strong growth hitting the MLM Energy Sector and this international company is just one of many great companies hitting the ground running!
I intercepted the following email and WOW talk about some rocking momentum at Vemma!
“Hello Vemma team!
We all know how successful the Verve brand is and the new markets it’s opening with the college market around the country. In fact, if we only had Verve to market, we could still build an empire around just this brand. Well, Jeff our VP of Finance just informed me yesterday that what took us 19 months of serious brand building, heavy promotions and a ton of work to reach in Verve monthly sales was reached in 4 weeks by our new Bod-e brand! On top of this, enrolling numbers are up 60%! This is exciting and when you think about the fact that we have over 6,000 taking the Bod-e Challenge in the first 2 weeks of January, it gives you a little peek into what the future holds for this brand.
Now, if you’ve ever tried to purchase an Apple product when they first introduce a new iPad or iPhone, you’ll know that inventory levels are tough to predict. When they run out, the buzz builds, demand shoots up and people really want the product even more. Well, the sales of Bod-e are kinda like that. We’ve run out of some products, but quickly worked to restock quantities. We’re increasing our raw material orders on the entire line and gearing up for huge growth. Unfortunately, we’ll be a little spotty on some products until we get a better handle on the demands. I apologize in advance if your team experiences any back orders, but boy is the buzz building!
This…is gonna be big!
IMPORTANT WATCH THIS VIDEO FROM THE FTC
It’s exciting to see some many great MLM companies creating system and cultures that can transform peoples lives. This is the second case study I have agreed to complete. I chose to do the IsAgenix 30-Day Cleansing & Fat Burning System during December, because it will keep me focused on my end game of starting 2012 at under 200lbs!
Let introduce you to my good friend Jodi Stott.
She is now at her 10 year mark or as she as one of her favorite authors would say, 10,000 hours mark (see Outliers by Malcolm Gladwell)
Jodi will be the first to tell you, she has made every mistake any network marketer can make in this profession. Her journey has not been perfect by any means, but through it all she remained focused and managed to fail forward to success.
4 Star Golden Circle Rank in Isagenix.
Women of the Year Award 2006
Top 100 Income Earners
She is so passionate about helping other women have the time and financial freedom to enjoy their life, that in 2011 she banded together with some other great female EntreLeaders to form one of the fastest growing Female Entrepreneur movements I have ever seen… Real Savvy Success.
I also talked with Yoli co-founder, Robby Fender this week to see if I could find out if co-founder, Rick Eisele had left Yoli. The good news is Rick is still part of the Yoli family and all is good. With the solid executive team Yoli now has in place, Rick has been able to move back home with his family on a full-time basis to also help with the family business.
Isagenix, is having what I call a resurgence. A few months ago, I started seeing some great Internet marketers join this company because of the products, and the success those products had on them personally. Well now we are seeing veteran network marketers who are tired of all the hype and failed start-ups moving to this well funded, debt-free company.
In closing, I have a great friend who has left the network marketing profession to launch his own venture in the sport arena. He contacted me to see if could help him sell his very successful Body By Vi, distributorship. If you want to join one of the fastest growing companies in the weight management field, contact me personally.